Gold seems to have setup for a counter trend rally as discussed yesterday. The yellow metal has held on to its lows at $1,277.69 levels and managed to rally through $1,289.00/90.00 levels until now, and a continued push towards $1,308.00 levels seems most likely. Looking at the wave structure, the yellow metal had dropped lower in an impulse from $1,357.00 through $1,277.00 levels earlier. The most likely and probable wave count is towards the north side upto $1,330.00 levels in an a-b-c wave form. Furthermore, the overall structure also indicates that Gold has not yet completed its drop and is preparing for a much deeper correction. Please take this counter trend rally as an opportunity to go short again. Resistance remains strong at $1,357.00 levels and ideally prices should stay lower.

Silver pretty much remains unchanged from yesterday, preparing to resume its counter trend rally. Looking into the resent wave count, the metal had dropped lower from $18.20 levels into 5 waves forming an impulse. With the lows formed at $16.70 levels, it looks like an intermediary bottom has been formed and a counter trend rally should materialize from here. On the flip side, yet another low is also possible towards $16.50/60 levels, before Silver begins to rally higher towards $17.30 and $17.60 levels respectively. The metal is expected to rally towards $17.60 into 3 waves forming an a-b-c, as depicted on charts here. Also note that immediate resistance is seen at $17.30 levels while support is seen at $16.60 levels respectively.

Trading plan:

Aggressive: Remain long for now with stop around $16.40 levels, targeting $17.30 and $17.60 levels.